the difficulty of the problems to solve, electricity cost, and pool-mining-cost all affect the time before you hit ROI and begin making a profit. It has the potential to replace a government-issued currency of a community, country, orif you're really optimisticthe whole world. The cons include a high risk of fraud and lower profits. Its creator Nakamoto did call it electronic cash in his white paper, but theres no law saying Bitcoin should be this or that. It's also in finite supply, and it's very hard to make more. H/s due to the increasing speed of mining hardware. Here are some factors that can help you determine your potential for profit: Hardware Costs, bitcoin mining rigs use GPUs or video cards similar to what gamers use. To aid in selection, the Bitcoin Wiki provides a handy mining hardware comparison : Although Bitcoin Wiki doesnt list many models as currently shipping on from their manufacturers, all these mining rigs (and more) are available for resale as new or used. You can easily search for your current mining rigs power consumption or use this list. Long-term, you'll find wildly different predictions from analysts and experts, from zero to 100,000 or more.
But Bitcoin is not fully anonymous; criminals would likely prefer cryptocurrencies like Monero and Zcash. A hotter environment will require more cooling, thus consuming more electricity, making location another important factor in calculating for profit. Market Value, the cryptocurrency market has matured enough to have witnessed prices crash and bounce back. The title posits that the value of Bitcoin is "probably zero based on an odd, snake-eating-its-tail argument: Its supposed to be a currency, but users treat it more like gold (they save it instead of spending it so it will never be any good. Pool Fees, as bitcoin problems become more and more difficult, more computing power is required. So which is it? It's a decentralized system that changes over time, and it might end up being something else entirely. If (pre-)ordering any such equipment, be aware that potential manufacturing, shipping, customs or other delays could end up being very costly as difficulty rises or price falls during the interim. Well explain this situation in depth but first, you need to know a few basic technical terms from the world of Bitcoin mining: Block: A group of Bitcoin transactions, chosen from the mempool (the list of all currently pending transactions) and recorded by a miner. Its pretty much the cutting edge of mining tech so well select it for our example.